4th December 2013
Following our news update on 23 October 2013, FSCS has been calculating the balancing payments due to claimants who suffered losses in Lifemark investments. The work has taken slightly longer than we anticipated, because we have had to further reconcile nominal claim amounts with PricewaterhouseCoopers, Keydata’s insolvency practitioner. To clarify: the nominal claim amounts were the total amount of funds originally invested into the Lifemark bonds.
We are pleased to announce that the majority of these payments will be made during the week commencing 9 December. However, there are some cases where payments are not yet possible, because further work needs to be done in settling the nominal claim amounts. FSCS is working to resolve these issues and will provide a further update when we are able to distribute the remaining payments.
As outlined in our last update future distributions from Lifemark’s Trustee must be calculated using the method specified by the Court. The Trustee has recently made an additional distribution. Because of the calculation method directed by the court, the distribution amount due to individual bondholders will vary depending on which Lifemark bond(s) a claimant invested in.
Claimants generally submitted their claim to FSCS under a single claim reference, even where they made multiple Lifemark investments. In these cases, FSCS has processed the claims and calculated the overall losses under a single claim reference. This means that we will need to review the data again before calculating the amounts FSCS should pay to claimants with Lifemark losses. This work has already begun, but will take some time. We will aim to provide another update about the progress of this work in the New Year.